Gig work, contingent work and alternative work arrangements The 2016 C2ER Annual Conference and the LMI Institute Forum Minneapolis, MN
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1 Gig work, contingent work and alternative work arrangements The 2016 C2ER Annual Conference and the LMI Institute Forum Minneapolis, MN Workforce Development Researcher Roundtable June 8, U.S. BUREAU OF LABOR STATISTICS bls.gov
2 Outline What is the Gig economy and how big is it? 1999, 2001, 2003, 2005 BLS Contingent Worker Surveys 2017 BLS Contingent Worker Survey Data Gaps 2 U.S. BUREAU OF LABOR STATISTICS bls.gov
3 What is the Gig economy? Gig work arranged through or using on-line intermediaries UBER, Mechanical Turk, Taskrabbit Alternative work arrangements Temporary help agencies, On-call workers and day laborers, Contract company workers Independent contractors, Self-employed workers, Part-time workers Contingent workers 3 U.S. BUREAU OF LABOR STATISTICS bls.gov
4 What is the Gig economy and how big is it? Gigs - Jobs through on-line intermediaries like UBER, Task Rabbit, Mechanical Turk - 0.5% or workers (Katz and Kreuger, 2016) GAO report focus on alternative work arrangements Core contingent: Agency temps, Direct hire temps, On-call workers and day laborers, and Contract Company workers PLUS Independent contractors, Self employed workers, Part-time workers 4 U.S. BUREAU OF LABOR STATISTICS bls.gov
5 What is the Gig economy and how big is it? GAO report 30.6% using 2005 BLS data 35.3% using 2006 General Social Survey (GSS) data 40.4% using 2010 GSS data Katz and Kreuger alternative work arrangements Temporary help agency, on-call, contract company workers, independent contractors or freelancers 10.1% in % in U.S. BUREAU OF LABOR STATISTICS bls.gov
6 What is the Gig economy and how big is it? BLS definitions used in 1995, 1997, 1999, 2001, 2005 and 2017 Contingent work Alternative work Temporary help agency workers On call workers Independent contractors Contract company workers 6 U.S. BUREAU OF LABOR STATISTICS bls.gov
7 Defining and estimating the contingent workforce Contingent workers are those who do not have an explicit or implicit contract for long-term employment. Several pieces of information are collected to determine the existence of a contingent employment arrangement: Whether the job is temporary or not expected to continue How long the worker expects to be able to hold the job The main reason people expect to be in their jobs a short time How long the worker has held the job Persons who do not expect to continue in their current jobs for personal reasons, such as retirement or returning to school, are not considered contingent workers, provided that they have the option of continuing in the job were it not for these personal reasons. 7 U.S. BUREAU OF LABOR STATISTICS bls.gov
8 Table 1. Defining and estimating the contingent workforce, February 2005 Alternative estimates of contingent workers Total Percent of total employed Estimate 1: Wage and salary workers who expect their jobs will last for an additional year or less and who had worked at their jobs for 1 year or less. 2.5 million 1.8 Estimate 2: Workers, including the self-employed and independent contractors, who expect their employment to last for an additional year or less and who had worked at their jobs (or been self-employed) for 1 year or less. 3.2 million 2.3 Estimate 3: Workers who do not expect their jobs to last. (Unless otherwise noted, the following charts all focus on this estimate.) 5.7 million 4.1 Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 8 U.S. BUREAU OF LABOR STATISTICS bls.gov
9 Defining alternative employment arrangements Independent contractors are all those who are identified as independent contractors, consultants, and freelance workers in the supplement, regardless of whether they are wage and salary workers or self-employed. On-call workers are persons who are called into work only when they are needed, although they can be scheduled to work for several days or weeks in a row. Temporary help agency workers are workers who are paid by a temporary help agency, whether or not their job was temporary. Workers provided by contract firms are workers who are employed by a company that provides them or their services to others under contract and who are usually assigned to only one customer and usually work at that customer s worksite. NOTE: An employment arrangement may be defined as both contingent and alternative, but this is not automatically the case because contingency is defined separately from the four alternative work arrangements. 9 U.S. BUREAU OF LABOR STATISTICS bls.gov
10 Chart 1. Contingent workers as a percent of the total employed, February Percent Estimate 1 Estimate 2 Estimate 3 Source: February Contingent Work Supplements, Current Population Survey, Bureau of Labor Statistics 10 U.S. BUREAU OF LABOR STATISTICS bls.gov
11 Chart 2. Employed persons by contingent work status and age, February 2005 Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 11 U.S. BUREAU OF LABOR STATISTICS bls.gov
12 Chart 3. Educational attainment of contingent and noncontingent workers, February 2005 Percent Contingent workers Noncontingent workers Less than a high school diploma High school graduates, no college Some college, no degree Bachelor's degree or higher Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 12 U.S. BUREAU OF LABOR STATISTICS bls.gov
13 Chart 4. Employed contingent and noncontingent workers by full- or part-time status, February 2005 Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 13 U.S. BUREAU OF LABOR STATISTICS bls.gov
14 Chart 5. Employed contingent workers by their preference for contingent or noncontingent work arrangements, February 2005 It depends 5.7% Not available 3.5% Prefer contingent employment 35.5% Prefer noncontingent employment 55.3% Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 14 U.S. BUREAU OF LABOR STATISTICS bls.gov
15 Chart 6. Employed contingent and noncontingent workers by health insurance coverage and eligibility for employerprovided pension plans, February 2005 Percent Contingent workers Noncontingent workers Health insurance coverage from any source Employer-provided health insurance coverage 49.6 Eligible for employerprovided pension plan Included in employerprovided pension plan Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 15 U.S. BUREAU OF LABOR STATISTICS bls.gov
16 Chart 7. Workers with alternative arrangements as a percent of the total employed, February Percent Independent contractors On-call workers Temporary help agency workers Workers provided by contract firms Source: February Contingent Work Supplements, Current Population Survey, Bureau of Labor Statistics 16 U.S. BUREAU OF LABOR STATISTICS bls.gov
17 Chart 8. Employed persons in alternative and traditional work arrangements by age, February % 90% to 24 years 80% 70% 60% 50% 40% years and over 30% 20% 10% 0% Independent contractors On-call workers Temporary help agency workers Workers provided by contract firms Workers with traditional arrangements Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 17 U.S. BUREAU OF LABOR STATISTICS bls.gov
18 Chart 9. Employed persons with alternative and traditional arrangements by select educational attainment groups, Feb 2005 Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 18 U.S. BUREAU OF LABOR STATISTICS bls.gov
19 Chart 10. Employed persons in alternative arrangements by their preference for a traditional work arrangement, February 2005 Percent Prefer traditional arrangement Prefer alternative arrangement Independent contractors On-call workers Temporary help agency workers Note: Workers provided by contract firms were not asked about their preference for a traditional arrangement. Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 19 U.S. BUREAU OF LABOR STATISTICS bls.gov
20 Chart 11. Employed persons with traditional and select alternative arrangements by health insurance coverage and eligibility for employer-provided pension plans, February 2005 Percent Temporary help agency workers Workers with traditional arrangements Workers provided by contract firms Health insurance coverage from any source Employer-provided health insurance coverage Eligible for employerprovided pension plan Included in employerprovided pension plan Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 20 U.S. BUREAU OF LABOR STATISTICS bls.gov
21 Chart 12. Median usual weekly earnings of full-time workers with alternative work arrangements, February 2005 $800 $700 $716 $756 $600 $500 $400 $519 $414 $300 $200 $100 $0 Independent contractors On-call workers Temporary help agency workers Workers provided by contract firms Source: February 2005 Contingent Work Supplement, Current Population Survey, Bureau of Labor Statistics 21 U.S. BUREAU OF LABOR STATISTICS bls.gov
22 May 2017 Contingent Worker Supplement 22 U.S. BUREAU OF LABOR STATISTICS bls.gov
23 May 2017 CWS - Timeline 2 distinct types of changes to the survey are being considered Minor changes to the 2005 survey question wording Adding a limited number of new questions (4) to the end of the survey 23 U.S. BUREAU OF LABOR STATISTICS bls.gov
24 May 2017 CWS- changes to 2005 wording Modifications to the wording to reflect changes in institutions such as the passage of the ACA need to be made by March The software language used for the 2005 and earlier versions of the questionnaire is no longer supported by the Census Bureau The entire instrument, which has been termed the most complex supplement we have ever undertaken, has to be completely reprogrammed in a new software language. Work on the reprogramming needs to be started as soon as possible to ensure a May 2017 fielding 24 U.S. BUREAU OF LABOR STATISTICS bls.gov
25 May 2017 CWS- new questions Do individuals obtain customers or in-person tasks through companies that electronic match them, often through apps Main job, Second job (if identified previously as a multiple job holder), Additional work for pay Do workers complete short, online only tasks posted on electronic lists for pay 25 U.S. BUREAU OF LABOR STATISTICS bls.gov
26 May 2017 CWS- new questions Prior to being asked, new questions have to be: Fully specified Are we asking what we think we are asking? Cognitively tested Do respondents understand what we are asking? Finish testing and review of the new questions by June 2016 and submit OMB Clearance shortly thereafter Receive Office of Management and Budget (OMB) Clearance The OMB clearance process includes two periods for public comment. 26 U.S. BUREAU OF LABOR STATISTICS bls.gov
27 May 2017 CWS consultation process Additional questions have been developed, BLS is currently consulting with a variety of known experts and interested parties We realize that there is a lot of interest in this survey The temptation to make lots of changes to the 2005 CWS is strong Across time comparability is extremely important Identifying areas of significant research that we can undertake to plan for possible fielding after 2017 is also very important 27 U.S. BUREAU OF LABOR STATISTICS bls.gov
28 Data Gaps Establishment based surveys How businesses produce their product or provide their service Wage and salary and self employed Traditional workers Alternative work arrangements Contingent workers Gig workers Other margins of adjustment Overtime, formal training 28 U.S. BUREAU OF LABOR STATISTICS bls.gov
29 Contact Information Michael W. Horrigan Associate Commissioner Office of Employment & Unemployment Statistics U.S. BUREAU OF LABOR STATISTICS bls.gov
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